Vietnam consists of 58 provinces and five central municipalities (Hanoi, Ho. Ho Chi Minh, Hai Phong, Da Nang and Can Tho) stretching from the north to the south.
There are approximately 280 industrial parks in Vietnam, including the foreign industrial parks invested by foreign investors and local industrial parks build and operated by Vietnamese Government or local companies. The investor need to be careful at the time of choosing the industrial parks as some of them are operated and managed badly due to overexploitation.
We used to have a bad images of “industrial parks” with dusty and smelly emission of lots of smokes. However in recent years, many industrial parks developed the infrastructure with supporting services including administrative procedures and gradually changing the image as a reliable investment location. After deciding to invest in Vietnam and choosing the area to start business, which points should the investors focus on at the time of choosing the industrial parks? When inspecting many factories in Vietnam, many investors are confused with too many choices. Low rental fee is important factor for all but they need to remember that they should consider of the most important factors for them as it will be different depending on each company.
■ Whether IPs have proper license or not?
It’s important for the investors to check whether the local or foreign industrial park have proper license or not in advance. It should be noted that the type of business of the investor which isn’t stipulated in the license of the industrial park may not be accepted in that industrial park. Recently, government agencies have been controlling the environmental issues more strictly. Therefore, in order to avoid these problems related to the environment, the investor is advised to check the contents of environmental license, regulations of noise and waste emission of the industrial park before investing.
■ Location
For companies under consideration of investing in Vietnam, the low rental fee of the local industrial park is attractive but investors should not ignore the running costs. This cost includes the transportation cost to the airport, international port, cargos import place and sales destination. In addition, there is also commuting cost of the resident staff appointed to work in Vietnam. Thus, choosing the best location for each investor is the most important thing with research of the future infrastructure systems which will be completed in the near future.
■ Community of foreign companies
If there are many companies whose nationality is same in the industrial park, the investor can study useful experiences from these preceding companies and cooperate to exchange information to form a business community in the area.
■ Security system – surrounding environment
Some industrial parks have many entrances to access from the outside and anybody can come in and out easily. Therefore, the investor should pay attention to the security system of the industrial park and the surrounding areas to protect their own assets. Good security in the area will help the companies to save the security cost.
■ Supporting services
Supporting service for the administrative procedures is one of big concern of the investors at the time of establishing local enterprise in Vietnam. Companies should choose the industrial park which has a good relationship with the local authorities in order to obtain the licenses and perform the procedures to establish a company quickly and smoothly. Besides, the industrial park with full of supporting services related to HR administration, environment, logistics, accounting will help investors feel safe when investing in Vietnam. As a result, companies can focus on production and don’t need to waste too much time on the unfamiliar complicated legal procedures when investing in Vietnam for the first time.
■ Foreign languages speaking staffs
Establishing and operating the company while facing with many difficulties in another country is a big challenge for investors at the first stage of a business. If there are supporting staffs who can speak English, Japanese or Korean in the industrial parks, it will be a big relief for the investors as it will help the investors to communicate without feeling any stresses by the misunderstandings due to different languages.
Currently more and more industrial parks are developed, which creates more choices for the investors. However, it also can be said that it’s getting difficult for investors to choose the suitable industrial park due to many choices.
Ready – built rental factory area established and managed by Kizuna JV corporation is one of the reliable choices that investors can consider. Kizuna JV corporation is managing 2 types of ready – built rental factory areas: ECO Factory standard ready-built factory for lease area in HCMC and Kizuna Rental Serviced Factory at the border between HCMC and Long An province with various services supporting the companies from the first stage of establishment. The strong point of Kizuna is supporting services and English, Japanese and Korean speaking staffs and this can help foreign investors feel like at home when first investing in Vietnam and make them feel safe to focus on the production process.
Source: www.kizuna.vn
Key words: tips, choose, industrial parks, Vietnam
